5 reasons to invest in Property
Many people invest in property usually to hopefully earn an income at a later stage. While there are many advantages of investing in real estate, there are also significant risk factors to consider. Here are five reasons why an income property can be such a lucrative investment.
You are the boss!
When you invest in property, you become your own boss. You decide what property to invest in, what tenant you will rent to, how much rent you will charge how you will manage and maintain the property.When investing in other options such as stocks or mutual fund you are no longer the boss. Someone else is managing and controlling your money.
Ability to lend large sums of money
It is possible when purchasing property to begin with a relatively small amount of your own money, and borrow the rest, often four to twenty times more, from a lender. If the property does well you have the potential of significantly increasing your initial amount.
Rental Income Is Money in Your Pocket
Assuming that you are investing in a property to occupy it with tenants, you will be able to receive rental income. This rental is your own. In the beginning this money will be used to pay off the mortgage and other house related expenses but the longer you hold the property the more of this money becomes yours to keep.
Property allows you the option to buy more properties
In many countries banks allow you to use equity (the price difference between what the property is currently valued at and what you owe to the bank) to purchase more property. This is a popular strategy that you can use to help increase the size of your property portfolio.
Quit your job
Ok, this benefit is for those who are really motivated and invest well but it is possible, with well purchased properties, to live off the rental income. There are different strategies to get to this point but the most important thing is to get started.
Being an property owner is a huge commitment, but, if handled properly, that huge commitment can bring equally large financial rewards.
Contact us at JPI and we can show you how to invest in property